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Home My WebLink About10/22/2024 04.B. Human Resources Department Budget Presentation of Yg y :•.n:4:411->##, a�r„ r BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.B. For Meeting of: October 22, 2024 ITEM TITLE: Human Resources Department Budget Presentation SUBMITTED BY: Connie Mendoza, Director of Human Resources SUMMARY EXPLANATION: ITEM BUDGETED: STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: ATTACHMENTS: 2025-2026 HR Budget Presentation_Council Agenda.pdf 82 7• b. s. 0 „7.1111figir.„„,_.......4.1411/41 ffp inicHet•e.......: e it ..Frz. • -• '',.. N'tiVt$ \ l 4111,04*, ., •-Nt ',in(.,.T7P1. koill N4- Oaf ,-T ' ,411,W4/04104.111111r. •Aar ,• ..,.,. ,0‘.t. .„ors. • _Y 7J ', -714V. • N. 4. ,, ilF400.., Arr 46. Itic . $.19 liritillk -42"- , fa % .., -t- 41:r. , .1/4 •*it , .41,Mlir ..Z.401'... ' •1 \NI% _.,,e; II.g,kz% .;,,. . .-4-1111- /f ,'' ‘7744A16 klr Nr• - ,it 1411,...,-",....-:4,...;-1-_-- ,,,,__-, W ,,n,_ , , 1 ram ra..r.„4,41-40,;.:.•, II I 11 I h' 2 it;-•,,1 ',,L_.' l'' ,_______ —",e,..r. W" • .e. .....r. ,,,,e..;,,, A .....i41° r r,f5 .01 Al wwiont •,-..4.. 1 . , Z,4,- .." -41-:; .,4. ' '111.' --'..... A P4 .4-4,TiesAL0-4,1-- ' --- , _ epr.F.4.7. - - V', ---',air 1 Ni.,„Itw,,,41 , , via A.s. .114 i F •, ,v .br. .. t HUMAN RESOURCES t , .. • ,1%:;s , '. I .• 1 Budget Presentation 2025 / 2026 1, .._ , ..,. . allaRk:. 1 • _ I. __ , i., i - --- -- I I •0. I I , co c.) HUMAN RESOURCES I ❑ The City of Yakima Human Resources Department is responsible for the administration of a comprehensive human resource management program in accordance with state,federal and local regulations. This includes managing legal compliance issues and equal employment opportunity mandates,while fulfilling the requirements of our City Charter,and promoting a variety of programs to ensure workforce diversity. ❑ We provide consulting and support services for the City and our entire workforce. ❑ Legal compliance • Equal Employment Opportunity Commission (EEOC)Compliance (Federal mandate) • Americans with Disabilities Act(ADA)Administration (Federal and State mandate) • Family Medical Leave Act(FMLA)Administration (Federal and State Mandate) • Paid Family Medical Leave(PFML)Administration (Unfunded State Mandate) • Washington Cares Act Administration (State Mandate) • FMCSA/FTA/DOT random drug testing administration (Federal Mandate) • Employment eligibility verification (I-9) (Federal mandate) • Record Retention Act(State mandated Chapter 40.12 RCW) • Fair Labor Standards Act(FLSA)(Federal mandate) ❑ Policy development and administration ❑ Labor law compliance and contract negotiations • 10 collective bargaining units • Grievance processing • Unfair labor practice/arbitration hearings • Coordinate and conduct investigations into complaints iiim • Advise departments and participate in disciplinary procedures and disciplinary actions co 1 ❑ Employee Benefit Administration ■ Health plan administration • Benefit plan design,development,implementation • Broker/third party administrator contract administration • Annual open enrollment process • Provide customer service support for plan participants • Assist with eligibility,claim processing/resolution,coordination of benefits • Stop-Loss insurance administration&processing • Employee Assistance Program(EAP) • Coordinating wellness program ■ Retirement system benefits administration support(State mandated Chapter 41.28 RCW) ■ Administer deferred compensation 457 plan ■ Life insurance program&claims processing support ■ Disability insurance claim processing ■ New employee orientation ■ Employee training and development ❑ Workers'Compensation ■ Process workers' compensation claims and provide internal case management ■ Serve as liaison between injured worker, supervisors and third party claims manager ■ Administer return to work program ■ Monitor time loss compensation benefits ■ Participate in required compliance audits performed by WA State ■ Third party administrator (TPA) contract administration co I ❑ Unemployment Compensation • Coordinate information exchange with Employment Security Department • Comply with ongoing claim activity • Monitor audit findings • Represent City in appeal process ❑ Civil Service (Police,Fire&Charter) • Mandated by City Charter and RCW 41 • Requires the City establish a system of personnel administration based on merit principles and governing the appointment,promotion,transfer,layoff, removal,discipline and welfare of its employees,and other incidents of City employment • Classification creation and updates • Determination of pay allocation. • Processes reduction in force(RIF)notifications,planning,placements,etc. • Provides evaluation support and compliance. • Assists in the resolution of miscellaneous personnel issues. ❑ Payroll Administration • Payroll Administration • Timekeeping/Coding • IRS Compliance • State Reporting • Garnishment Management • CBA Compliance/Support • Direct Deposit Management • State Audits • Union Audits co co ORGANIZATIONAL CHART I C. Mendoza Director 10 Full Time Equivalents(FTE's) Civil Service Commissions D. Korevaar Chief Examiner Charter,Police and Fire Civil Service Administration Pre-employment Testing Promotional Testing Classification Development Compensation Allocation J. Zeutenhorst G. Peterson-Lee R. Schneider HR Services Administrator HR Services Administrator Payroll Administrator (3 HR Specialists) (3 HR Specialists) Payroll Administration Collective Bargaining Support Recruitment(Si Testing Timekeeping/Coding Medical Leaves Employee Orientation/Exit Interviews IRS Compliance Workers'Compensation Charter,Police and Fire State Reporting Unemployment Benefits Civil Service Support Garnishment Management Training Health Benefits Support CBA Compliance/Support Personnel Investigations Retirement System Direct Deposit Management Administrative Policies Deferred Compensation Program State Audits Records Management Litigation/Discovery Union Audits Public Records = Drug Testing Program HUMAN RESOURCES 2025 Program Costs $1,318,305 Council Priority: A Resilient Yakima Priority Level: 1 Personnel Administration $466,644 Costs associated with this fund include salary and benefits of HR staff, professionals services such as attorney fees,investigators,HRIS software subscriptions,professional development and required certifications.This also includes city wide mandatory training and development. Payroll Administration Payroll Administration $255,980 0 $255,980 20% Costs associated with this fund covers the administration of payroll services for City employees including the cost of the payroll software program and the salary and benefits of the Payroll Administrator. The payroll administrator is Civil Service responsible for processing,balancing and reconciling payroll data to ensure (Charter/Police employees are paid accurately,timely and in compliance with local,state and /Fire)$595,681 federal laws.The average monthly payroll processed is approximately$7.6 45% million dollars. Personnel Administration Civil Service(Charter,Police&Fire) $595,681 $466,644 35% Mandated by RCW 41 and Yakima City Charter.Charter requires the City provide a minimum annual budget in the sum equal to one half of one per cent of the preceding year's total payroll for support of the commissions. This fund covers the expenses related to the administration and oversite of recruiting,screening,testing materials as well as the salary and benefits of the Chief Examiner and other staff assigned to provide support services.Annually, the team reviews 3000+applications,administers approximately 200 exams and manages the pre-employment exam process(i.e.background, ❑Payroll Administration ❑Personnel Administration psychological exams,etc.)for all city employees. ❑Civil Service(Charter/Police/Fire) Co CO EMPLOYEE HEALTH BENEFITS 2025 Program Costs RESERVE $15,649,371 Council Priority: A Resilient Yakima Priority Level: 1 Benefit 3rovides medical,dental&vision coverage for approximately 1600 employees, M iCare Clinic Stop Loss g pp YAdministration dependents&retirees. Services ° Insurance $878,800 6% $327,683 2/ Premiums Claims Benefit Administration $327,683 $937,888 6% Processing :overs broker fees,third party administrator fees and other cost related to the administration of the medical program,including an allocation of 1.9 FTE HR $695,0004% staffing,city service charges and any charges related to the Affordable Care Act. $top Loss Insurance Premiums $937,888 rotects the City's plan against catastrophic or unpredictable losses.Maximum arge claim exposure:$275,000. Claims Processing Costs $695,000 xpenses related to processing claims,handle appeals,medical reviews, administer COBRA benefits,create plan documents,manage HRA flexible spending program,etc. Claims Paid $12,810,000 Medical Claims :ost for services,doctors visits,prescriptions,medical appliances,etc. Paid VliCare Clinic Services $878,800 $12,810,000 operating expenses(i.e.facility rental,doctor salaries,medical 82% equipment/supplies,on site prescriptions,cleaning service,etc.)clinic administrative fees,etc. Revenues 3evenue consists of employee/employer contributions,operating fund ❑Benefit Administration ❑Stop Loss Insurance Premiums assessments for each covered employee through payroll deduction and retiree ❑Claims Processing ❑Medical Claims Paid pension remittance. ❑MiCare Clinic Services Co CD EMPLOYEE WELLNESS / EMPLOYEE 2025 Program Costs ASSISTANCE PROGRAM $66,900 Council Priority: A Resilient Yakima Priority Level: 1 IIWellness Program $32,600 This program promotes healthy lifestyle choices and provides services to improve the physical,mental and emotional well-being of all employees. This also funds programs such as the employee appreciation picnic and health&wellness fair. 17Cess Employee Assistance Program $34,300 Assistance Program$32,600 49/ o Contract with a third party to provide confidential services to all Program employees and their families and assists in helping to identify and resolve $34,300 51% personal problems that may be affecting their lives and job performance. Revenues Revenue consists of a pass through of funding from health plan premiums. ❑Wellness Program ❑Employee Assistance Program CD 0 UNEMPLOYMENT COMPENSATION 2025 Program Costs RESERVE FUND $206,740 Council Priority: A Resilient Yakima Priority Level: 1 This program is mandated by Washington State as established by the legislature.Laws governing the self-insured unemployment insurance program are defined in WAC 192.The Unemployment Compensation Reserve Fund covers unemployment claims filed by former employees. Benefits Administration Benefit Administration $56,735 $56,735 27% City's administration of the unemployment program,including an allocation of.35 HR staff members wages&benefits.Coordinates claims processing,appeal hearings,etc.with Wa State Employee Security Department. Claims Paid Claims Paid $150,000 $150,000 73% Actual costs incurred by the City for unemployment claims filed. Approximately 40 claims are filed annually. Revenues Revenues are generated through monthly accrual assessments for each employee. Revenues fund the reserve balance. ❑Benefits Administration ❑Claims Paid tG WORKERS COMPENSATION FUND 2025 Program Costs Council Priority: A Resilient Yakima $3,712,133 Priority Level: 1 Benefits This program is mandated by Washington State as established by the legislature. Administration Laws governing self-insured Workers Compensation programs are defined in RCW Safety o 51.This fund is used to pay medical claims and provide time loss payments to City Committee $277,633 8/ employees injured while performing their assigned duties. $14,500 0% Insurance Premiums Benefit Administration $277,633 $170,000 5% Administrative service fees for third party administrator to manage claims and other costs related to the administration of City's workers compensation claims,including an allocation of 1.55 HR staff members wages&benefits,training,etc. Claims Claims Processing $450,000 Processing Cost related to the processing approximately 150 workers compensation claims 450,000 12% annually such as professional,vocational and legal fees. Claims Paid $2,800,000 Costs incurred by the City for workers compensation claims such as medical costs, Claims Paid time-loss disability payments,etc.This fund also covers the quarterly assessment $2,800,000 fees determined by WA State Labor and Industries. 75% Insurance Premiums $170,000 Annual stop loss insurance premiums. Safety Committee $14,500 Covers the costs for supplies,training and other related expenses for the Safety Program such at MSDS chemical sheet tracking subscription software,etc. ❑Safety Committee ❑Benefits Administration ❑Insurance Premiums ❑Claims Processing Revenues Revenues are generated through monthly accrual assessments for each employee. ❑Claims Paid Revenues fund the reserve balance. Add a F.. CD N BUDGET REQUESTS New Position: Payroll Analyst $106,000 The City currently only has one full-time position,the Payroll Administrator,dedicated to all of the duties associated with reviewing and processing payroll.This has been a concern for many years.Given the City is embarking in the process of updating its payroll system,the critical need for a backup to aid in processing, auditing,and administration of payroll to ensure stability has been brought to the forefront. ➢ This position would assist the Payroll Administrator with work required to process payroll,by performing complex,and highly responsible work involving the implementation and facilitation of labor contracts and all applicable federal and state payroll laws,rules,and regulations. CD W T S I S .. • .. _•_ _,......,________ __....., ___ _ ___ __ .. .. . ..._ _ ,_ . . __._ ___ __ . _ _ _.. . ._ _ , } jar- IMP CD